In August, 2007, Governor Easley catapulted NC into the national energy spotlight by signing our nation's 4th most aggressive state Renewable and Efficiency Portfolio Standard into law. Less than one month later, North Carolina's rule for "Net Metering" was awarded a grade of 'F' by a national group of renewable energy industry experts, placing North Carolina at the bottom of 39 states.
What was their reason for giving North Carolina an 'F'? Utility customers who want to generate renewable energy are currently punished, not supported, by our State's current net metering rule. They cannot rely on being able to sell their renewable energy certificates to the small NC GreenPower program because its portfolio is overloaded on solar and cannot accomodate the growth rate of new renewable systems that would be installed if North Carolina improved its grade on net metering and simplified interconnection rules. Under North Carolina's current net metering arrangements, a residential renewable energy generator is required to pay more to the utility for consuming less electricity. This problem will grow worse as many more building developers, businesses and homeowners want to install solar and other renewable systems smaller than 2 megawatts in size.
Legislative concern is growing that after having voted in 2007 to require the use of renewable energy solutions, our State's rules are sending a market signal that North Carolina does not really want clean energy. Legislators are considering taking action to direct the NC Utilities Commission to adopt net metering and interconnection rules that would improve North Carolina from its current grade of 'F' to a 'B+' for net metering, and to improve the interconnection rules.
Now that the state RPS law requires the use of renewable energy, North Carolina utilities need net metering and interconnection rules that will no longer discourage citizens and businesses from using renewable energy. This improvement is both technologically and economically feasible, making the use of renewable energy more cost-effective for generators and ratepayers than it otherwise would be.
The Freeing the Grid report, recently released by the Network for New Energy Choices, Interstate Renewable Energy Council, the Vote Solar Initiative and the Solar Alliance, provides a straightforward, easy to understand analysis of what constitutes an appropriate Net Metering rule and simplified Interconnection standard. Good rules enable system owners to provide renewable energy at the lowest cost possible for everyone, including the electric utility, utility customers, and the electric consumer who wants to generate renewable energy.
Download a simple one-page explanation of net metering here. Between 2000 and 2005, NCSEA, our electric utilities and state Utilities Commission climbed the renewable energy learning curve to create NC's current Simplified Interconnection standard and Net Metering rules.
To date, only two utility customers in North Carolina have signed up with their electric utility to 'net meter' their residential solar systems, and one of them immediately withdrew their agreement. The state's current net metering rule actually results in a person paying the utility more money for consuming less electricity, and ignores the cost-saving benefits to all ratepayers that distributed renewable energy systems provide.
Opponents of renewable energy incorrectly assume, but cannot prove, that the lack of participation in North Carolina's current net metering rule is indicative of an overall lack of citizen and business interest in using renewable energy. In contrast to this opinion is the fact that residential and commercial renewable energy and solar thermal hot water system investments are increasing statewide, but at a slow pace due to current regulatory rules.
Where the rubber meets the road, North Carolina's energy rules and regulations are still a barrier for many to invest in our state's future by choosing to generate renewable energy. The Vote Solar Initiative and NCSEA are offering an online net metering and solar power petition for supportive citizens and businesses to sign.
By signing the online petition, North Carolina citizens and business concerned with their state's cumbersome and outdated net metering and interconnection rules can positively encourage their legislators to take action on net metering. Learn more about net metering and how you can help create fair rules in North Carolina that support net metering by downloading this simple one-page handout and signing the petition today.
For more information, contact NCSEA at info@energync.org.
Download the full Freeing the Grid report.
Sign the online petition today.
Click on these links to read NCSEA's and other interveners filings with the NC Utilities Commission on the issues of net metering and simplified interconnection online.
